The best working capital loans will have little to no restrictions on what business expenses you can use funds for. They will have a combination of low rates, easy qualification requirements, fast funding speeds, and flexible repayment terms.
Working capital loans come in different forms, and our picks of the best providers and brokers feature multiple loan types. These include term loans, lines of credit, and invoice financing. Your unique business circumstances and goals will dictate which loan is a good fit for you.
Here are our recommendations for the 10 best small business working capital loans for 2023:
Best Providers for Working Capital Loans:
- Bluevine: Best overall provider for low rates and flexible use of funds
- Fundbox: Best for short-term financing needs
- National Funding: Best for customer service
- QuickBridge: Best for a simple application process
- American Express: Best for low-revenue businesses
- OnDeck: Best for quick access to funds
- Funding Circle: Best for long repayment terms
- SBG Funding: Best for custom funding options
Best Brokers for Working Capital Loans:
- Clarify Capital: Best overall broker for multiple loan options
- Creditfy: Best for large credit limits on a business line of credit
Need funding for your business? Unsure where to turn for trusted solutions? Fill out our secure online application in minutes to access custom financing options. | ||
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Need funding for your business? Unsure where to turn for trusted solutions? Fill out our secure online application in minutes to access custom financing options. |
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Best Working Capital Loans At a Glance
Maximum Loan Amount | Estimated Annual Percentage Rate (APR) | Application to Funding Speed | Maximum Loan Term | Required Annual Revenue | Minimum Credit Score | |
|---|---|---|---|---|---|---|
 | $250,000 | 6.2% and up | 24 hours | 12 months | $480,000 | 625 |
 | $150,000 | 10% and up | 24 hours | 24 weeks | $100,000 | 600 |
 | $400,000 | Varies | As fast as same day | 18 months | $250,000 | 600 |
 | $400,000 | Varies | 24 hours | 18 months | $250,000 | 600 |
 | $250,000 | Varies | 24 to 72 hours | 18 months | $36,000 | 660 |
 | $250,000 | 29.9% | 24 to 72 hours | 24 months | $100,000 | 625 |
 | $500,000 | 10% and up | 48 hours | 7 years | None | 660 |
| $5 million | Varies | 24 to 48 hours | 5 years | $250,000 | 600 |
Maximum Loan Amount | Estimated APR | Application to Funding Speed | Maximum Loan Term | Required Annual Revenue | Minimum Credit Score | |
|---|---|---|---|---|---|---|
 | $750,000 | Varies | 24 to 48 hours | 24 months | $120,000 | 600 |
 | $2.5 million | 6.49% and up | 24 to 48 hours | 3 years | $100,000 | 600 |
Bluevine: Best Overall Provider for Low Rates & Flexible Use of Funds
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Rates & Terms | |
Application Speed | 5 minutes |
Funding Speed | 24 hours |
Loan Amount | Up to $250,000 |
Starting Interest Rate | 6.2% |
Estimated APR | 6.2% to 78% |
Repayment Term | 12 months |
Repayment Schedule | Weekly and monthly |
Loan Type | Line of credit |
Qualifications | |
Minimum Credit Score | 625 |
Time in Business | 24 months |
Annual Business Revenue | $480,000 |
Why We Like Bluevine
Bluevine is our leading provider for the best small business working capital loans. It offers a line of credit product with one of the lowest rates on our list, fast approval and funding speeds, and the flexibility to draw funds on an as-needed basis. For these reasons, we also selected it as one of the best small business line of credit providers.
With its small business line of credit, you can get rates as low as 6.2%. However, you could effectively pay less than that if you pay your balance off quicker. This is because rates are calculated as a simple interest rate with the assumption that you make use of the entire credit line and pay only the minimum amount each month. As such, this makes it an even better option for covering short-term expenses.
You’ll need a business bank account to qualify, and Bluevine offers financing in most states—with the exception of Nevada, North Dakota, and South Dakota. It also has a list of ineligible industries, which include businesses involved with gambling, illegal or controlled substances, auto dealerships, and firearms. General partnerships and sole proprietorships are ineligible for financing.
If approved, you can make payments on a weekly or monthly basis, but you’ll need to meet stricter criteria to qualify for the monthly repayment plan. You must be a corporation or limited liability company (LLC), have a credit score of 700, be in business for at least three years, and earn $960,000 in annual revenue.
You can apply online from the Bluevine website and get a decision as quickly as 5 minutes.
Fundbox: Best for Short-term Financing Needs
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Rates & Terms | |
Application Speed | 5 minutes |
Funding Speed | 24 hours |
Loan Amount | Up to $150,000 |
Starting Interest Rate | 4.66% and up |
Estimated APR | 10% to 79% |
Repayment Term | 12 or 24 weeks |
Repayment Schedule | Weekly |
Loan Type | Line of credit |
Qualifications | |
Minimum Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $100,000 |
Why We Like Fundbox
Fundbox offers the shortest repayment term in our guide. However, its competitive rates, easy qualification requirements, and fast funding speeds make this a good option for businesses that do not need long-term financing. The provider also made our list of the leading bad credit business loans.
You can choose between a 12- or 24-week repayment plan. Rates on a 12-week plan start as low as 4.66%, while the 24-week plan has rates starting at 8.99%. In addition to the minimum qualification requirements stated above, you must also have a business checking account, and those looking for the best advertised rates must exceed the stated minimum eligibility criteria.
If approved for a line of credit, you can also consider utilizing Fundbox’s Flex Pay loan product. With it, vendors can charge your account, after which you’ll have three days to pay the balance to avoid fees. If the balance is not paid within that time frame, then it will then be reflected as a draw against your business line of credit.
Fundbox has an easy online application process that can be completed in less than 5 minutes. Some businesses can receive an approval within 3 minutes and have access to funding as fast as the next business day.
National Funding: Best for Customer Service
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Rates & Terms | |
Application Speed | 10 minutes |
Funding Speed | As fast as same day |
Loan Amount | $10,000 to $400,000 |
Starting Interest Rate | Factor rates as low as 1.11x |
Estimated APR | Varies |
Repayment Term | 4 to 18 months |
Repayment Schedule | Daily and weekly |
Loan Type | Term loan |
Qualifications | |
Minimum Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $250,000 |
Why We Like National Funding
National Funding places a large emphasis on delivering a high level of personalized customer service. The majority of its loans are retained in-house, and applications are reviewed on a case-by-case basis to maximize approval odds.
You’ll do best with this provider if your business has strong finances and credit. With that said, it can work with startups and businesses with lower credit scores as its minimum requirements are a 600 credit score and six months’ time in business.
Rates are charged in the form of a factor rate and start as low as 1.11x if you have excellent credit. National Funding generally focuses on short-term loans as its longest repayment term is 18 months. It also grants early payment discounts of up to 7% on the remaining balance if you pay off the loan within 100 days of getting funded.
National Funding does not require collateral to be pledged for a loan, a fact that helped it land a spot as one of our top unsecured business loan providers.
QuickBridge: Best for a Simple Application Process
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Rates & Terms | |
Application Speed | 10 minutes |
Funding Speed | As fast as 24 hours |
Loan Amount | $10,000 to $400,000 |
Starting Interest Rate | Factor rates as low as 1.11x |
Estimated APR | Varies |
Repayment Term | 4 to 18 months |
Repayment Schedule | Daily and weekly |
Loan Type | Term loan |
Qualifications | |
Minimum Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $250,000 |
Why We Like QuickBridge
QuickBridge offers a very similar product to that of National Funding but may provide a slightly easier loan application process with fewer documentation requirements. As a result, you won’t have to provide nearly as much paperwork, which might otherwise normally include tax returns, profit and loss statements, balance sheets, bank statements, and other financial statements.
With that said, we recommend checking out both providers due to how much their loan products have in common as both wound up on our list of the leading easy business loans. QuickBridge carries the same minimum qualification requirements as National Funding. To be considered for financing, you’ll need at least a 600 credit score and six months’ time in business. You’ll also need annual revenue of $250,000 or more.
Loan terms are also similar as you can get up to $400,000 in funding with factor rates as low as 1.11x if you have excellent credit. To apply, you can visit the QuickBridge website.
American Express: Best for Low-revenue Businesses
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Rates & Terms | |
Application Speed | 5 minutes |
Funding Speed | 24 to 72 hours |
Loan Amount | Up to $250,000 |
Starting Interest Rate |
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Estimated APR | Varies |
Repayment Term | 6, 12, or 18 months |
Repayment Schedule | Monthly |
Loan Type | Line of credit |
Qualifications | |
Minimum Credit Score | 660 |
Time in Business | 12 months |
Annual Business Revenue | $36,000 |
Why We Like American Express
With the exception of one other provider we’ve selected in our guide, American Express has one of the lowest low revenue requirements of just $36,000 annually. It can also work with startups as it looks for just 12 months’ time in business. As a result, it can be a good option if your business is relatively new and does not meet the requirements of other lenders.
The American Express small business line of credit, formerly marketed under Kabbage Funding, charges a monthly fee rather than a traditional interest rate. Monthly fees vary based on the length of the loan repayment period and the strength of your business qualifications. Loan terms can be selected for 6, 12, or 18 months, with lower fees being charged for its shorter term loans.
The provider states that the minimum credit score to be considered for financing is 660, although it could be higher depending on your overall relationship with the lender, your credit history, and other factors. You can complete an online application in only minutes. If approved, funding from any draw you take on the line of credit can be deposited into your bank account within one to three business days.
OnDeck: Best for Quick Access to Funds
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Rates & Terms | |
Application Speed | 10 to 15 minutes |
Funding Speed | 24 to 72 hours |
Loan Amount |
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Starting Interest Rate | Varies |
Estimated APR | 29.9% and up |
Repayment Term |
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Repayment Schedule |
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Loan Type | Term loan and line of credit |
Qualifications | |
Minimum Credit Score | 625 |
Time in Business | 12 months |
Annual Business Revenue | $100,000 |
Why We Like OnDeck
When you get a line of credit with OnDeck, you’ll have instant access to funds you draw. It’s much faster than many other providers that otherwise have a delay of several hours to several days.
Its line of credit can offer up to $100,000 in funding. It also has a term loan product with up to $250,000 in funding. Although in some cases you can get an APR as low as around 29.9%, the provider states that the average is 52% APR for its term loan and 52.6% APR for its line of credit. Those averages are based on loans originated in the half-year ending March 31, 2023.
OnDeck is transparent with what its minimum qualification requirements are. But like many other lenders, rates are based on the strength of your business finances and credit, so you’ll have a better chance of getting lower rates the more well-qualified you are.
You can complete an online application. Approvals can be issued within 24 to 72 hours, after which you can receive funding up to $100,000 as fast as the same day in certain states. These fast funding speeds are why the provider is also a pick for our best same-day business loans.
Funding Circle: Best for Long Repayment Terms
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Rates & Terms | |
Application Speed | 6 minutes |
Funding Speed | As fast as 48 hours |
Loan Amount | $25,000 to $500,000 |
Starting Interest Rate | 7% but can vary |
Estimated APR | 10% and up |
Repayment Term | 6 months to 7 years |
Repayment Schedule | Biweekly and monthly |
Loan Type | Term loan |
Qualifications | |
Minimum Credit Score | 660 |
Time in Business | 2 years |
Annual Business Revenue | None |
Why We Like Funding Circle
Funding Circle has the longest repayment term available out of the companies we recommend. You can get a repayment plan for up to seven years, and spreading out payments for a longer period can also help with lowering your monthly payments.
What’s more, this provider offers the largest loan amounts out of the individual providers in our guide. You can get up to $500,000 on a term loan, with rates that start around 10%.
Although Funding Circle has no annual business revenue requirement, it will evaluate the total amount of your debt payments in relation to your income. Other qualification requirements also tend to be more strict than the providers we’ve mentioned as you’ll need a credit score of 660 and at least two years’ time in business. If approved, you can expect to receive funding in as little as 48 hours.
Business owners must allow Funding Circle to place a lien on business assets as collateral for the loan. Real estate liens are not accepted. A personal guarantee is also required of any individuals who have an ownership interest of 20% or more in the company. If you’re interested in applying or learning more, check out the Funding Circle website for contact information and a link to an online application.
SBG Funding: Best for Custom Funding Options
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Rates & Terms | |
Application Speed | 10 minutes |
Funding Speed | As fast as 24 to 48 hours |
Loan Amount |
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Starting Interest Rate |
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Estimated APR | Varies |
Repayment Term |
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Repayment Schedule |
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Loan Type | Term loan, line of credit, and invoice financing |
Qualifications | |
Minimum Credit Score | 500 |
Time in Business | 6 months |
Annual Business Revenue | $250,000 |
Why We Like SBG Funding
If you’re looking for customized loan terms tailored to your specific business circumstances and needs, you should strongly consider SBG Funding. SBG Funding also boasts a high approval rate of 85%. Minimum qualification requirements include six months’ time in business, a credit score of 500, and annual revenue of $250,000.
Its working capital loans include term loans, a line of credit, and invoice financing. The exact rates and terms you get will vary depending on what loan you apply for and your business qualifications. However, well-qualified businesses can get up to $5 million in funding in as little as 24 to 48 hours, a feature that helped land it a spot on our list of the leading fast business loans.
To apply, you can complete a loan application online. Doing so will not negatively impact your credit score, so it can be a good place to start if you have concerns about how likely you are to get approved.
Clarify Capital: Best Overall Broker for Multiple Loan Options
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Rates & Terms | |
Application Speed | 2 minutes |
Funding Speed | As fast as 24 to 48 hours |
Loan Amount | Up to $750,000 |
Starting Interest Rate | 7% |
Estimated APR | Varies |
Repayment Term | 6 to 24 months |
Repayment Schedule | Varies by loan type |
Loan Type | Term loan, line of credit, invoice factoring, and merchant cash advance (MCA) |
Qualifications | |
Minimum Credit Score | 550 |
Time in Business | 6 months |
Annual Business Revenue | $120,000 |
Why We Like Clarify Capital
Clarify Capital is a loan broker with more than 75 lenders in its network. It offers several different types of working capital loans, including term loans, lines of credit, invoice factoring, and MCAs.
When you work with a broker like Clarify Capital, a loan specialist will match you with a lender and loan type best suited for your business qualifications and needs. This is something that can save you time and money from having to apply to multiple lenders separately or conducting your own research to determine which type of financing might be best for you.
Working with a broker can also improve your chances of getting a loan approval. With that being said, Clarify Capital has flexible qualification requirements for credit score, time in business, and revenue.
If approved, you can get up to $750,000 in funding with repayment terms of up to two years. To get started, you can submit an online application in less than 2 minutes, and there is no obligation to accept a loan offer even if you are deemed eligible.
Creditfy: Best for Large Credit Limits on a Business Line of Credit
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Rates & Terms | |
Application Speed | 5 to 10 minutes |
Funding Speed | 24 to 48 hours |
Loan Amount | Up to $2.5 million |
Starting Interest Rate | 6.49% |
Estimated APR | 6.49% and up |
Repayment Term | 6 months to 3 years |
Repayment Schedule | Monthly |
Loan Type | Line of credit |
Qualifications | |
Minimum Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $100,000 |
Why We Like Creditfy
With Creditfy, you can get a line of credit for up to $2.5 million, the highest loan amount for a credit line on our list. In addition, it has competitive rates, easy qualification requirements, and fast funding speeds.
Creditfy’s rates start as low as 6.49%. It also advertises easy qualification requirements. You need a credit score of 600, annual revenue of $100,000, and six months’ time in business. It backs up these criteria with a loan approval rate of 90% and has partnerships with lenders that other brokers may not yet have.
As with most other brokers, working with Creditfy means one of its loan specialists will work with you to find the lender best suited for your needs. You’ll be sure to work with an experienced individual, as Creditfy requires all of its representatives to have a minimum of two years of industry experience.
If a line of credit is not the right fit, you can also check out Creditfy’s other loan products, including equipment financing, invoice financing, and Small Business Administration (SBA) loans. To apply, you can visit the Creditfy website.
How We Chose the Best Working Capital Loans
We considered the following items in selecting the best small business working capital loans.
- Interest rates, fees, and estimated APRs
- Application, approval, and funding speeds
- Types of loans offered
- Qualification requirements, including time in business, credit score, and revenue
- Loan amounts offered
- Loan terms and length of repayment
- Customer reviews and ratings
Types of Working Capital Loans
You may see lenders advertising different types of loans as a working capital loan. To help you identify the best type of loan best suited for your needs, here is a summary of common loan products you may see:
- Term loan: This provides a single lump sum of funds and generally has a repayment period between six months and 10 years. It is a good option if you do not have a recurring need for funds.
- Small business line of credit: This is a revolving credit line that allows you to draw funds on an as-needed basis up to your credit limit. This flexibility makes it useful for covering recurring expenses or emergencies. See our guide on how a small business line of credit works for more details.
- Invoice financing: If you’ve issued invoices to customers but are still awaiting payment, you can get an advance on those funds with invoice financing. See our illustration on how invoice factoring works.
- MCA: This is an expensive form of financing that allows you to get a cash advance in exchange for a percentage of your credit card sales. This should generally be regarded as a last resort given its costs. See our perspectives on whether an MCA is right for your business.
- Revenue-based financing: This allows for your monthly payments to go up or down depending on your company’s revenue. It can be a good option for your business if you’re concerned about cash flow issues and have predictable sources of revenue. Head to our article describing how revenue-based financing works.
Alternatives to Working Capital Loans
Although working capital loans can be used to cover a wide range of business expenses, you still need to meet the qualification requirements of a lender to get approved., Here are some alternatives to consider if you’re having trouble getting a working capital loan:
- Startup business loans: These types of loans can be easier to get if you have been in business for less than two years or have lower revenue. Some startup loans require collateral to be pledged as security for the loan, while others allow for penalty-free access to retirement funds. Check out our list of different types of startup loans.
- Personal loan for business purposes: If your business finances or credit are presenting challenges when it comes to getting approved for a business loan, a personal loan may be an option. You’ll be personally liable for making the payments if your business fails, so you’ll need to consider that as a possible risk. Head to our recommendations for the best personal loans for business funding.
- Loans from friends and family: If you’re still having trouble getting financing, loans from friends and family can be one way to get around the traditional requirements of a bank. This option can also be less expensive than traditional methods of financing. If you’re unsure how to pursue this option, see our guide on how to ask friends and family to fund your business.
Our article on how to get a small business loan contains tips on various stages of the loan process.
Frequently Asked Questions (FAQs)
How quickly can I get a working capital loan?
You can get a working capital loan within 24 to 48 hours. However, this will depend on the lender and type of loan so it’s possible that it could take up to two weeks or more. If you need to get a loan quickly, you can review our list of the best fast business loans.
Can I get a working capital loan with bad credit?
You can get a working capital loan with credit scores as low as 500, and you can use our guide on the best business loans for bad credit. Depending on the type of loan you’re getting, a credit score may not even be required. For example, invoice financing does not typically have a credit score requirement as repayment of the loan is more dependent on the credit of the companies that owe you the outstanding invoice amounts.
Where can I get a working capital loan?
You can get a working capital loan from credit unions, banks, online lenders, or loan brokers. Since working capital loans are used to cover many types of daily operational expenses, they can include term loans, lines of credit, invoice financing, and purchase order (PO) financing.
Bottom Line
Funds you receive from a working capital loan can be used for a variety of business expenses. Common examples include rent, payroll, and other operating costs. Many types of loans can be used for working capital, and the list we’ve compiled includes an assortment of providers that offer term loans, lines of credit, invoice financing, and more.
